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BEST POWER TECHNOLOGY REPORTS THIRD QUARTER EARNINGS; COMPANY ANNOUNCES EXPANSION OF MARKETS AND PRODUCT LINE

 NECEDAH, Wis., Oct. 22 /PRNewswire/ -- Best Power Technology, Incorporated (NASDAQ: BPTI) today announced sales and earnings for the third quarter ended Sept. 30, 1993, its first quarter as a public company.
 Sales for the third quarter of 1993 were $35 million, up 10 percent for the same period in 1992, and were the highest sales of record for any quarter in the company's history. Pro forma earnings per share for the quarter were 32 cents on 8,862,874 weighted average shares versus 42 cents on 8,061,269 weighted average shares a year ago. The increase in shares resulted principally from the company's Aug. 4, 1993, initial public offering.
 For the nine months ended Sept. 30, 1993, sales were $97 million or 13.6 percent ahead of the same period in 1992. International sales increased at a rate of 36.5 percent for the nine-month period. Pro forma earnings per share of $1.03 on 8,332,874 weighted average shares were up from last year's 83 cents on 7,992,936 weighted average shares.
 "These results are consistent with our expectations for our first reporting period since our August 4 initial public offering," said William L. Paul, Best Power Technology president and chief executive officer. "The report also demonstrates Best's continuing growth in our markets."
 Paul noted that the results reflect increased marketing and engineering expenditures during the quarter to foster market development and to strengthen Best's current product lines in the rapidly growing power protection industry and the emerging markets therein.
 The company announced the consolidation of its marketing and sales organizations and that John Hickey, formerly vice president- international, was named senior vice president-sales and marketing, with worldwide responsibility for sales, service and marketing. Hickey previously served as director of the company's international division of sales from 1989 to 1993.
 "I am pleased to announce the appointment of John Hickey as our chief marketing and sales executive," Paul commented. "He has demonstrated a high level of talent and a unique ability to produce results in expanding foreign markets. Under John's direction, our international sales have grown from $7 million in 1989 to $33 million in 1992. Our foreign distribution network has proven to be highly effective. We feel John will bring significant knowledge and proven skills to this new position that will assist Best to continue to grow in all markets."
 Paul cited additional steps the corporation took during the quarter to further develop its markets, including expansion of the company's regional representation throughout North America; refinements of the company's worldwide distribution network; increases in advertising and promotional efforts with special emphasis upon new products and markets; and continued support of the company's commitment to customer satisfaction through expanded service and technical support personnel and facilities.
 In regard to Best's continuing efforts to strengthen its product lines, the company recently introduced the FORTRESS 3KVA UPS which is being enthusiastically received in the low-end market. According to Paul, "This is the smallest unit on the market and also one of the least expensive -- its use of Line Interactive Technology to deliver true no- break protection is ideal for LANs, PCs and workstations."
 Best is recognized as the world's leading manufacturer of SINGLE- PHASE UPS products (360VA to 18KVA) and has announced that it will be entering the THREE-PHASE UPS market. Best has signed a letter of intent with Silcon A/S of Denmark to expand sales of THREE-PHASE UPS systems worldwide. THREE-PHASE UPS are designed to protect products using higher power ranges (10-250KVA), such as centralized data processing. The letter of intent provides for the Silcon marketing of Best's low- power SINGLE-PHASE UPS products for the PC market under their label. Once finalized, this strategic alliance will present a unique opportunity for growth through increased earnings and a strengthened competitive advantage.
 Silcon A/S is one of the leading European manufacturers in advanced THREE-PHASE UPS systems, with a turnover of $320 million Danish Krone (approximately $55 million US). Both Best and Silcon are leaders in Line Interactive Technology and Best continues to focus its efforts in the development of state-of-the-art, cost-effective technologies with specific attention to emerging markets.
 Best Power Technology, founded in 1977, is a recognized leader in the design and manufacture of systems to protect computers and other sensitive equipment from power irregularities. Headquartered in Necedah, Wis., the company has sales offices worldwide and employs approximately 825 people. Best is traded on the NASDAQ under the symbol BPTI. 1992 revenues totaled $119 million.
 BEST POWER TECHNOLOGY, INCORPORATED
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (Unaudited)
 Sept. 30 Dec. 31
 1993 1992
 ASSETS
 Current assets:
 Cash and cash equivalents $17,378,368 $ 1,625,836
 Accounts receivable - trade,
 less allowance of $205,000
 and $390,000 14,847,222 13,699,300
 Other current assets 4,004,095 2,366,960
 Inventories 15,093,000 15,151,293
 Total current assets 51,322,685 32,843,389
 Property, plant and equipment, net 14,130,941 13,743,251
 Other assets 928,237 1,024,835
 Total assets $66,381,863 $47,611,475
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $ 7,585,943 $ 7,097,520
 Advance payments - customer
 service contracts 5,345,747 2,751,339
 Other current liabilities 4,491,366 8,395,845
 Total current liabilities 17,423,056 18,244,704
 Advance payments - customer
 service contracts 3,736,843 4,068,367
 Other long-term liabilities 210,628 349,451
 Total liabilities 21,370,527 22,662,522
 Common stockholders' equity 45,011,336 24,948,953
 Total liabilities and
 stockholders' equity $66,381,863 $47,611,475
 BEST POWER TECHNOLOGY, INCORPORATED
 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited)
 Three months ended
 Sept. 30
 1993 1992
 Net Sales $35,120,987 $31,940,528
 Cost of goods sold 19,754,914 17,554,415
 Gross profit 15,366,073 14,386,113
 Operating expenses:
 Selling and marketing 6,665,127 5,512,772
 Administrative 1,963,696 1,907,893
 Research and development 2,023,162 1,477,843
 Incentive compensation 0 0
 Total 10,651,985 8,898,508
 Income from operations 4,714,088 5,487,605
 Other income (expense):
 Interest income 162,045 137,630
 Interest expense (74,348) (124,548)
 Foreign currency (loss) gain 78,082 (91,850)
 Miscellaneous 29,212 (4,502)
 Total 194,991 (83,270)
 Income before income taxes 4,909,079 5,404,335
 Income taxes 2,089,401 572,229
 Net income $ 2,819,678 $ 4,832,106
 PRO FORMA DATA
 Income before income taxes $ 4,909,079 $ 5,404,335
 Income taxes 2,089,401 2,042,145
 Net income $ 2,819,678 $ 3,362,190
 Net income per common share $ .32 $ .42
 Weighted average number of
 common shares 8,862,874 8,061,269
 Nine months ended
 Sept. 30
 1993 1992
 Net Sales $97,029,272 $85,394,753
 Cost of goods sold 54,342,847 47,149,892
 Gross profit 42,686,425 38,244,861
 Operating expenses:
 Selling and marketing 18,810,171 17,161,339
 Administrative 5,589,185 5,705,300
 Research and development 5,128,928 4,938,809
 Incentive compensation 1,287,000 0
 Total 30,815,284 27,805,448
 Income from operations 11,871,141 10,439,413
 Other income (expense):
 Interest income 397,668 308,727
 Interest expense (282,881) (461,770)
 Foreign currency (loss) gain 68,624 79,145
 Miscellaneous (72,955) 108,205
 Total 110,456 34,307
 Income before income taxes 11,981,597 10,473,720
 Income taxes 1,897,909 1,200,007
 Net income $10,083,688 $ 9,273,713
 PRO FORMA DATA
 Income before income taxes $11,981,597 $10,473,720
 Income taxes 3,374,812 3,858,409
 Net income $ 8,606,785 $ 6,615,311
 Net income per common share $ 1.03 $ .83
 Weighted average number of
 common shares 8,332,874 7,992,936
 NOTE: PRO FORMA DATA is to reflect income taxes as if the company had been a C corporation for all periods presented. The company's status as an S corporation was terminated on June 30, 1993.
 -0- 10/22/93
 /CONTACT: Dennis E. Burke, vice president, external affairs, of Best Power Technology, 608-565-7200/
 (BPTI)


CO: Best Power Technology, Inc. ST: Wisconsin IN: CPR SU: ERN PER

KL-AR -- CL015 -- 5745 10/22/93 12:53 EDT
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